CO129-603-3 Education Department- revised grant code 24-1-1949 - 28-12-1949 — Page 38

The Rt. Rev. Bishop R.O.Hall, M.C., Bishop's House, Hong Kong.

sir,

EDUCATION DEPARTMENT.

HONG KONG.

3rd August, 1949.

With reference to your letter of 29th June, 1949, I have to stress the point that my proposals of the 13th April, 1949, do remove any limitation of the amount of subscriptions which schools may collect, but in accordance with the agreement in London I am proposing reduction of grant where I consider sub- scriptions too high, and I do mest definitely consider subscrip- tionsin excess of 50% to be too high. This procedure is also in line with your previous offer to take less grant in return for greater freedom, which has now been given by the very generous Block Grant proposed for "Other Charges".

I regret that I find your counter proposals unacceptable as in fact they would allow the schools to retain unlimited subscriptions and only effect a very trifling reduction in Government Grant. Most schools have already been rehabilitated since the war so that Major Repairs in the future should be very amall, and with funds at their disposal I see no reason to believe that there would be any margin at the end of the year; the heads of the schools would obviously spend up to the hilt.

As the principle for assessment of Government Grant given in Para. 7 of the Code is "the difference between the approved expenditure of the school for the year and its regular general income from school fees and other sources", it is clear that the higher the fees collected from parents by so much the less should be the Bost to Government by way of Grant. Indeed the only matter which is really giving me concern in this respect is whether in addition to the very generous Block Grant the permission to schools to retain subscriptions totalling 50% of tuition fees without reduction of general grant is not being far too generous with Public Funds, and whether the figure 50% should not be reduced.

I am proposing to put the amendments to the Grant Code as conveyed to you in my letter of 13th April, 1949, and including the amendment you suggest to Para. 3 of the Code, before the next meeting of the Board of Education. If the Board approves these amendments should then come into force with effect from 1st

X April, 1949.

I have the honour to be,

sir,

Your obedient servant,

(Sgd) T.R.Rowell.

Director of Education.

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